Everything You Need To Know About Types of Mutual Funds

Mutual funds are a type of fund that raises funds by selling all the units of that fund to the public by following a scheme. In simple words, it will just pool all your cash from various investors and then invest that in many financial assets on behalf of those investors. Investors or even beginners who don’t have enough expertise to invest also prefer their won schemes within India. It then invests the whole amount following which it distributes all returns towards investors. Investors are also able to benefit when it’s about huge returns as well as massive profits.

To know about mutual funds and what are the different types of them in today’s market, keep reading this post.

Growth Funds

These kinds of funds are usually focused on growth. That’s why they are generally invested in equity. The funds offer you a much higher income alongside amazing capital appreciation. Growth funds are considered to be suitable and the best option for people who are heavily into investing.

Income Funds

These kinds of funds will focus on providing you fixed incomes. This means that people who already have an income can invest in such funds. The funds also invest in a variety of assets like deposits, securities, certificates, debentures, bonds, etc. Income funds are usually managed with the help of managers who are highly skilled. Income funds are often responsible for protecting your capital alongside capital appreciation. Such investments are considered to be perfect for people who would like to invest for a period of at least two years.

Balanced Funds

Balance funds also allow you to maintain a healthy balance.You could invest in fixed securities alongside equities. The whole motive here is to get high returns against any risk of losing your hard-earned money. They are generally much risky compared to income funds but also quite less risky as compared to the equity funds. The schemes also invest in some of the equities and bonds. Alongside, a few conservative schemes allow you to invest in bonds and equities.

Money Market Funds

Another great online Mutual fund is money market fund. These invests invest a lot more money within markets.  Some of the best examples of funds include treasury bills, commercial paper, deposit certificates, government bonds, etc. Such funds also offer you much lower returns but also happen to be very safe to make an investment in.

So that brings our post in the different mutual types to an end. If you want to know more about online demat accounts, etc, you can check out our blog. If you want to get personal consultations regarding mutual funds and schemes, you can also consult Motilal Oswal and his associates. Motilal Oswal is the founder of Motilal Oswal Financial Services Ltd who has many years of experience on investment and he can shed light on the same. You can also download his mutual fund apps to get your consultation right away!